Polkadot Price Prediction: DOT likely to crash 10% with history likely on repeat mode

Polkadot (DOT) price is trading with a bullish bias, revisiting levels last tested in February. Despite the bulls showing strength, a correction may be underway as DOT is revisiting levels it has faced strong rejection in the past.

Also Read: Polkadot Price Prediction: DOT coils up for a possible 10% pounce

Polkadot price risks a 10% correction

Polkadot price pulled back during the December 22 trading session, as DOT was overbought, evidenced by the position of the Relative Strength Index (RSI) above the 70 level.

If selling pressure increases, Polkadot price could extend the fall, dipping into the supply zone that now acts as a bullish breaker between $7.236 and $7.575. A break and close below the midline of this order block at $7.396 would confirm the continuation of the downtrend.

Such a move could send Polkadot price lower to revisit the $6.240 level. Such a move would constitute a 22% drop below current levels.

Notably, the RSI is moving south, showing that momentum is dropping. This favors the bearish thesis.  

DOT/USDT 1-day chart

On the other hand, if sidelined investors come in, Polkadot price could push north, reclaiming above the $8.074 level and flipping it back into a support. In a highly bullish case. The gains could extend for DOT market value to tag the $9.000 psychological level.

Both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD) indicators support the bullish thesis, moving in the positive territory to show the bulls have the upper hand.